Swampscott boards debate retirees benefits

SWAMPSCOTT – Two warrant articles seeking increased benefits for town retirees continue to spark debate among the Retirement Board and Finance Committee as the two boards finalize their recommendations to Town Meeting voters.”1998 was the last time it was increased,” said Retirement Administrator Jeanne Darcy. “I think we’re due.”Finance Committee Chair Michael McClung said he expected his committee would continue debating the issue at one or two meetings before Town Meeting on May 2.”We’ve had more discussion on this than on many articles and those in the past years,” he said.Article 3 seeks to increase the base on which town retirees and their survivors’ cost of living allowance is determined, from $12,000 to $18,000. If the article passes, retirees will be paid a cost-of-living increase on the first $18,000 in retirement income they receive from the town, instead of the first $12,000 as is the case now.This will result in increasing retirees’ allowance from $360 per year to $540 per year, as a cost-of-living adjustment cannot exceed 3 percent of that base, according to state statute.Similarly, Article 4 seeks to increase a supplemental allowance from $6,000 per year to $9,000 per year for survivors of town employees who retired due to accidental (job-related) disability on or before Nov. 11, 1996.But the Finance Committee expressed reservations about the 50 percent increases at their March 31 meeting, with some members reluctant to recommend a measure that would continue to add to the town’s unfunded liabilities.According to the Finance Committee’s Annual Report to Town Meeting, the most recent audit of the retirement system shows a deficit of more than $30 million, with other post-employee benefit liabilities approaching $50 million.Making the matter more complicated is the relatively small sums involved, but the opportunity to set a large precedent by not adding to the town’s retirement liabilities. There are 221 people who will receive up to $15 more per month if Article 3 passes, costing the town $39,780 a year, according to numbers from the Retirement Board. Article 4 will cost the town $9,000 a year to boost the benefits of three individuals. But as Finance Committee member Rand Folta said at the March 31 meeting, “if you don’t stop now, where do you go from here?”Compromise is a possibility, however. Retirement Board member and Town Accountant Dave Castellarin said that he has proposed increasing the cost-of-living base in Article 3 to $15,000 rather than $18,000. According to information provided by Ralph White from MassRetirees.com, which advocates on retiree benefits for retired public employees, other towns and retirement boards have increased the cost-of-living base by smaller amounts or by smaller increments over time. McClung said that the Finance Committee has investigated this possibility. Retirement Agent Jeanne Darcy said that she hopes there will be some increase. If not, she said that the Retirement Board can ask for an increase in future years.